‘Best practices, prerequisite for insurance growth’
Cyril Ajagu, MD, Universal Insurance
Cyril Ajagu, Managing Director, Universal Insurance Plc spoke with reporters on the state of the nation’s insurance industry. AYELESO OLADELE was there.
How has the
consolidation
exercise affected the fortunes of the insurance industry?
The consolidation has actually affected the insurance industry in so many positive ways. It has afforded the insurance sector an opportunity to have a bigger, better, and deeper financial capacity to take on more risks in oil and gas, cabotage, and other big ticket risks. The consolidation exercise has also given the insurance industry the capacity to participate actively in the nation’s continuing economic reform, real estate development, and topflight asset management. So with the consolidation, we have a re-engineered insurance sector that can compete favorably in the financial services sector, offer better products and services, pay claims promptly, and record excellent profit margins
How can the National Insurance Commission (NAICOM) maintain standards in the local market?
In fairness to the sector’s regulatory body, NAICOM has evolved and they are still evolving. As the regulator evolves, that which it regulates evolves because everything has to do with evolution. NAICOM has to set the pace and continue to train and retrain its workforce to steer the activities of the sector efficiently. I know that the current commissioner for insurance as a thorough professional sticks to his word, one who will not compromise when it comes to issues that border on ethics, professionalism, and good corporate governance.
Today, clients who have issues with claims payment can approach NAICOM and expect to get a fair hearing from the regulatory body. This development is good for the industry and all the commission has to do is to continue seeking avenues through which it can create a level playing field for all operators, mete out sanctions without fear or favour, and join forces with operators to deepen the market and enhance insurance awareness and patronage in Nigeria.
At Universal Insurance, what are your targets for the current financial year?
We are targeting over N3billion as net premium, and also expect to achieve profit after taxation in excess of N600 million. But I must tell you with all sense of modesty that these targets are conservative; we are working towards ensuring that we exceed them by the end of the current financial year. The trend we are witnessing now is indicative of the fact that we will realize this ambition. We are a company that is proactive in nature and efficient in service delivery. We believe in creating wealth for our stakeholders and delighting our clients with technology-driven service delivery. Our strategies for achieving our goals are proving to be effective and at the end of the day all we are looking at is to add value to the lives of our clients, stakeholders and shareholders.
What plans do you have for branch network expansion?
Our branch network is in progress. We are opening branches in different parts of the country. We are opening branches in few countries in West Africa . After our regional expansion, we hope to take our services to other continents. The name Universal implies that our target is the whole world, and that is our ultimate goal. We are aware of the fact that the market is Nigeria is quite huge and we are positioning the Universal brand to take full advantage of emerging opportunities. Our branch expansion strategy is driven by exhaustive market research that ensures we don’t just expand for the sake of expanding or keeping up with competition. We place high premium on what kind of value our presence in any market will add to our clients. So the expansion work is ongoing, we are making good progress and formidable structures are being erected to ensure that we provide total insurance solutions and efficient risk management services to our clients.
What can you say is responsible for the recent growth in insurance stocks noting that the same had suffered great set back in the past?
Increase in awareness and the economic reform can be said to be factors that are driving the growth of insurance stocks in the capital market. Some people think that insurance stocks are not good, but that is lack of understanding or ignorance, which is a big disease. The fact that insurance stocks here do not rise in Nigeria is because within us we don’t understand what insurance is and because the awareness is not there. You practically cannot do any business in this world without insurance. So people are just beginning to know and appreciate the importance of insurance and this is bringing about positive changes for the sector in the market.
What can the industry do to sustain the tempo in insurance share price growth?
The awareness should be double edged actually. The awareness should be to the insuring public and greater awareness should be from the insurance sector. It is all about prompt delivery, providing succor to the people that came to insure with you. So you need to create the awareness. The insuring industry should look inside and continuously look and examine itself for best practices, good service delivery, for better risk analysis, better advice to the insuring public and better creation of awareness to insuring public. For you to create awareness to people you need to be aware. As the awareness is growing we need to sustain ourselves. In universal we do training and retraining both local and foreign, and then we summit articles and we talk with our friends.
How would you describe your claims payment portfolio in Universal Insurance?
Very prompt I must say. We occupy one of the enviable positions of having one of the least claims portfolios in this country. We just don’t take business for taking business. A lot of rate cutting happens because people don’t have intention to pay. Nigerian factor should not be in. Nigeria is one of the wonderfully blessed economies in this world so we ought to take our pride of place in the world.. And universal is set to be part of that.
What plans do you have for boosting your Human capital capacity and service delivery platform?
We encourage people because we believe in empowerment. There is no reason why a graduate in this country will not work and live wherever he or she wants to, drive the kind of car he or she wants to. It has to do with planning and it has to do with a good company. In our company we made a point of duty to them, as you come into this company, you don’t have to be 50 years experience. 50 years experience that does not add value is worthless us. You can have a five year experience and if your are a bubbling person that just came out from school and you are ready to roar, then we will take you on, because you have to learn and learn on the job. But most importantly you have to be loyal; integrity is very important because we are in the business of integrity.
And then as you give to the company the company will give to you. We believe in empowering staff, give you a car, give you a house, loan, give you the computer, and give you the things that you need to work with.
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